Now, banks can use Aadhaar for KYC verification: Details here
What's the story
Banks are now allowed to use Aadhaar as proof for Know Your Customer (KYC) verification, upon getting consent from the customer, according to the Reserve Bank of India (RBI).
The RBI said, "Banks have been allowed to carry out Aadhaar authentication/offline-verification of an individual who voluntarily uses his Aadhaar number for identification purpose."
Here's all about the new KYC norms specified by the RBI.
Rules (1)
Rules about DBT and non-DBT customers
Banks can obtain the customer's Aadhaar and may carry out e-KYC authentication only if the customer is desirous of receiving any benefit or subsidy under the Direct Benefit Transfer (DBT).
For non-DBT beneficiary customers, the Regulated Entities (REs) should obtain a certified copy of any Officially Valid Documents (OVD) containing details of customer's identity and address, along with one recent passport-size photograph.
Rules (2)
Rules about other documents and ceasing of account
The Regulated Entities must ensure that while submitting Aadhaar for Customer Due Diligence, non-DBT customers must blackout their Aadhaar number.
In case Aadhaar authentication has been carried out successfully, customers need not submit other official documents and photograph.
Before ceasing operations for an account, the Regulated Entities must give the customer an accessible notice and a reasonable opportunity to get heard.
Rules (3)
Rules about non-individual users, existing bank account holders
Also, according to new norms, all non-individual customers like companies and partnership firms must submit Permanent Account Number (PAN) along with other required documents.
For existing bank account holders, PAN or Form No. 60 is to be submitted within the timeline given by the government. Failing to do so shall be subject to temporary ceasing of account.